Capital investment vs. arbitrage

Capitalism is where the means of production is privately owned. Owned by what? The private sector. That could mean investors in the private sector. This could mean those who are influenced by the public sector. This could mean those who influence the public sector. It could mean those who support more social freedoms. It could mean those who oppose changes to the status quo.

As an economic system, an unlittered form of capitalism does not exist, so describing it merely as a "system" would be preferable. It is evident at a some microeconomic level, but above that, the term becomes less and less meaningful.

Arbitrage is where some measure of profit that would otherwise have been received by the producer to those who take the produce and sell it to another market or another seller for an additional margin, without any changes to the product what-so-ever. If it were limited to basics, it would not have been such a thing to complain about. However, when arbitrage claims a large percentage of the economy, it implies that unnaturally large portion of the economy is being controlled by some small entity. In some cases it is the private sector. In other cases, it is the public sector.

Capitalism by itself is not bad, however, mix it with a large opportunity to arbitrage transactions, and you've a got a recipe for systemic economic collapse.